Sunny day in the City as Footsie moves upward

BRITAIN’S biggest companies enjoyed their best day in the City for over a month today as the FTSE 100 Index climbed back towards the 4000 barrier.

Hefty gains by a host of heavyweights including a near 9% rise by BT helped the Footsie close 154.4 points higher at 3850.6 the biggest one-day gain since August 15.

Trading was lifted by a strong start on Wall Street, as US markets built on progress last night, while investors were also back on the look-out for bargains.

Martin Dobson, head dealer at NatWest Stockbrokers, said a number of heavyweight stocks had been oversold in the Footsie's slide to a six-year low earlier this week. He said investors were buying on impulse.

"There's not really a change in sentiment, just a change of tack. People are saying 'Let's go with the flow'."

Telecoms were among the pacesetters with BT rebounding from its recent 14-year low after a positive note from stockbroker ABN Amro jumping 13.25p to 167.25p.

Finnish mobile phone giant Nokia reported that industry-wide handset shipments would grow 10-15% next year, helping Vodafone climb 5.25p to 87.5p.

Banking shares, hit hard in the recent sell-off, were also on the front foot with Barclays climbing 6%, or 22.25p to 389p, HSBC up 20p to 684.5p and Royal Bank of Scotland up 44p at £12.62.

Rising oil futures helped BP and Shell both close almost 6% higher.